In a recent case, the Mumbai Suburban District Consumer Commission ruled against the Employees’ Provident Fund Organisation (EPFO) for delaying a retiree’s claim settlement. After all, isn’t the provident fund savings meant to support an employee in retirement?
The complainant, a former employee of Fleet Maritime Services (India), submitted his PF claim on 19 October, 2016. The claim was worth over Rs14 lakh. Under the EPF Scheme, 1952, such claims must be settled within 20 days. However, the amount was only credited on 14 December, 2016—a delay of 35 days!
Of course, EPFO argued that the delay was not its fault. It claimed the original submission was incomplete because it lacked a joint declaration, and said the complete documents were received only on 2 December, 2016. Based on this, EPFO maintained that the claim was processed within the required 20 days.
The Commission rejected this defence. It noted that EPFO had failed to produce any written rejection letter or communication proving the claim was incomplete when first filed. Without such evidence, the Commission held that the claim submitted on 19 October should have been treated as complete.
Finding EPFO guilty of “deficiency in service,” the Commission directed the organisation to pay 6 per cent annual interest on the claim amount of Rs14,06,272 for the 35 day delay, covering 9 November to 13 December, 2016. Now, EPFO has been given 45 days to comply with the order.